MLM companies and independent contractors (distributors) must understand the local, national and international laws that regulate the MLM and direct selling industry. In the United States, the direct selling industry is regulated by Federal Trade Commission rulings that influence commission plans or income claims. The sale of products is also regulated for all industries such as the three day return rate. In international legal cases, national and local laws vary.
Distributors need to understand commission and compensation plans so that they can maximize earnings. One of the basic elements of compensation is the primary bonus type. Often companies refer to these as binary, unilevel, or stairstep breakaway. Other commission plan types include fast start bonuses and pool bonuses. Once a distributor understands how these basic types work, they can modify their behavior to maximize earnings.
Successful communication permeates every aspect of the MLM and direct selling industry. Communication includes a range of abilities from giving effective public speeches, to motivating our downline/sales group, to providing business support. We communicate verbally and nonverbally to create meaningful business transactions and relationships.
MLM and direct selling considering an international business expansion is one common growth initiative. Although startups are often eager to pursue international markets right away, the best approach is to grow the business domestically first before expanding abroad. It is a great deal more important to first prove the business, work out any kinks and understand your systems and processes before considering options for international growth.
While it’s true that face-to-face interaction can build incredibly strong relationships, it’s not an absolute requirement. In fact, many of the tactics for strengthening relationships simply happen more often face-to-face. Those relationships can be strengthened online and new friendships can be built online.
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